Thailand Financial Sector Assessment Program

The debt market in Thailand has made important strides since the financial crisis of 1997. The Thai government has made significant progress in building an orderly yield curve and is beginning to establish some benchmarks. However, more needs to be done if the government is to achieve its objective of enhancing liquidity in the market. In particular, liquidity in the secondary market would be enhanced by reducing the frequency of auctions, while increasing the size of each individual offering. Such a change will require primary dealers to change their mode of operation from effectively a broking operation to the provision of greater underwriting and market making services; consequently a review of the primary dealer system is warranted. Nevertheless, prospects for development of the government securities market will be constrained overall by the likely limited financing need going forward, unless the authorities can secure some additional flexibility to restructure the existing portfolio or otherwise establish more meaningful benchmarks. The corporate debt market suffers from too few issuers of corporate debt and too little diversity of debt offerings. This reflects, in part the limited corporate need for long-term financing, the ready availability of alternative financing by commercial banks at competitive rates, and regulatory policies that emphasize investor protection by imposing substantial limitations on the ability of institutional investors to purchase anything but investment grade debt, which effectively precludes issuance of below investment grade debt.

Bibliographic Details

Main Authors:	International Monetary Fund, World Bank
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2008-04
Subjects:	ACCESS TO INFORMATION, ACTIVE DEBT, AMOUNT OF DEBT, ASIAN BOND MARKETS, AUCTION, AUCTIONS, BANK BONDS, BANK LOANS, BANKING SECTOR, BANKING SYSTEM, BENCHMARK BOND, BENCHMARK BONDS, BENCHMARK STOCKS, BID, BIDS, BOND, BOND AUCTION, BOND AUCTIONS, BROKER, BROKERS, BUDGET DEFICIT, CAPITAL MARKETS, CAPITAL REQUIREMENTS, CASH FLOW, CASH MANAGEMENT, CENTRAL BANK, CENTRAL BANK BILLS, COLLATERAL, COMMERCIAL BANK, COMMERCIAL BANK LENDING, COMMERCIAL BANKS, COMMERCIAL CODE, COMMERCIAL LOAN, COMMERCIAL PAPER, COMPETITIVE BIDDING, CORPORATE BOND, CORPORATE BOND ISSUES, CORPORATE BOND MARKET, CORPORATE BOND TRANSACTIONS, CORPORATE BONDS, CORPORATE DEBT, CORPORATE DEBT MARKET, CORPORATE DEBT SECURITIES, CUSTODY, DEBT, DEBT EXCHANGES, DEBT ISSUANCE, DEBT ISSUE, DEBT ISSUES, DEBT MARKET, DEBT OFFERING, DEBT OFFERINGS, DEBT OUTSTANDING, DEBT REPAYMENTS, DEBT RESTRUCTURING, DEBT SECURITIES MARKET, DEBT SECURITY, DERIVATIVE, DERIVATIVE PRODUCT, DERIVATIVE PRODUCTS, DERIVATIVES, DEVELOPMENT BANK, DISCLOSURE REQUIREMENTS, DOMESTIC BANKS, DOMESTIC DEBT, DOMESTIC MARKET, DUE DILIGENCE, EXCHANGE COMMISSION, EXTERNAL DEBT, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FISCAL POLICY, FIXED INCOME, FIXED INCOME MARKETS, FIXED INCOME SECURITIES, FIXED RATE BONDS, FLOATING RATE, FLOATING RATE NOTE, FOREIGN BANKS, FOREIGN CURRENCY, FOREIGN INVESTORS, FUND MANAGERS, FUTURES, FUTURES CONTRACT, FUTURES EXCHANGE, GOVERNMENT BOND, GOVERNMENT BOND MARKET, GOVERNMENT BOND MARKETS, GOVERNMENT BONDS, GOVERNMENT DEBT, GOVERNMENT DEBT MARKET, GOVERNMENT SAVINGS, GOVERNMENT SECURITIES, GOVERNMENT SECURITIES AUCTIONS, GOVERNMENT SECURITIES MARKET, HOLDINGS, ILLIQUID MARKET, ILLIQUID SECURITIES, ILLIQUID SECURITY, INDIVIDUAL INVESTORS, INSTITUTIONAL INVESTOR, INSTITUTIONAL INVESTORS, INSTRUMENT, INSURANCE, INSURANCE COMPANIES, INSURANCE COMPANY, INTEREST RATE, INTEREST RATE FUTURES, INTEREST RATE RISK, INTEREST RATE SWAP, INTEREST RATE SWAPS, INTERNATIONAL BANK, INTERNATIONAL FINANCIAL INSTITUTIONS, INTERNATIONAL SETTLEMENT, INTERNATIONAL SWAPS, INVENTORIES, INVENTORY, INVESTMENT CAPITAL, INVESTOR BASE, INVESTOR PROTECTION, ISSUANCE, ISSUANCE OF BONDS, LEGAL PROHIBITIONS, LEGAL PROVISIONS, LIFE INSURANCE, LIFE INSURANCE COMPANIES, LIQUID MARKET, LIQUIDITY, LOAN, LOAN APPLICATIONS, LOCAL GOVERNMENTS, LONG BOND, LONG-TERM DEBT, LONG-TERM INTEREST, LONG-TERM INTEREST RATE, MARKET BENCHMARKS, MARKET CAPITALIZATION, MARKET DEEPENING, MARKET FOR GOVERNMENT SECURITIES, MARKET INFRASTRUCTURE, MARKET INTERMEDIARIES, MARKET MAKING, MARKET PARTICIPANTS, MARKET SHARE, MARKET TRADES, MARKET TRANSPARENCY, MARKET-MAKING, MATURITIES, MATURITY, MEDIUM TERM NOTES, MONETARY FUND, MONETARY POLICY, MONEY MARKET, MONEY MARKETS, MUTUAL FUND, MUTUAL FUND INDUSTRY, MUTUAL FUNDS, NATIONAL TREASURY, OPEN MARKET, PENSION, PENSION FUND, PORTFOLIO, PRIMARY DEALER, PRIMARY DEALER SYSTEM, PRIMARY DEALERS, PRIMARY MARKET, PRIMARY MARKETS, PRIVATE INVESTMENT, PRIVATE PLACEMENT, PUBLIC DEBT, PUBLIC DEBT INSTRUMENTS, PUBLIC DEBT MANAGEMENT, PUBLIC DEBT MARKET, PUBLIC DEBT SECURITIES, PUBLIC OFFERING, REGIONAL BOND MARKET, REGULATORY AUTHORITIES, REGULATORY FRAMEWORK, REGULATORY SYSTEM, REGULATORY SYSTEMS, REPO, REPO FACILITY, REPO MARKET, REPO MARKETS, REPO TRANSACTIONS, RESERVES, RETAIL INVESTORS, RETURN, RETURNS, RISK CAPITAL, RISK MANAGEMENT, SECONDARY BOND MARKETS, SECONDARY DEBT, SECONDARY DEBT MARKET, SECONDARY MARKET, SECONDARY MARKET ACTIVITY, SECONDARY MARKET LIQUIDITY, SECONDARY MARKET TRADING, SECONDARY MARKETS, SECURITIES EXCHANGE, STOCK EXCHANGE, TAX, TAX POLICIES, TOTAL DEBT, TRADING, TRADING SYSTEM, TRANSACTION, TRANSACTION COSTS, TREASURY, TREASURY BILL, TREASURY BILLS, TURNOVER, UNDERWRITERS, UNIFORM PRICE, UNIFORM PRICE AUCTION, VALUATION, WAREHOUSE, YIELD CURVE,
Online Access:	http://documents.worldbank.org/curated/en/452831468117867439/Thailand-Fixed-income-technical-note https://hdl.handle.net/10986/28231
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